What's the correct answer

A contract does not exist for purposes of applying the revenue recognition principle in all of the following cases except for when: O The seller and buyer can terminate the contract without penalty and neither has performed any obligations under the contract. O The seller believes it is highly likely but not certain that the buyer will agree to the terms of the contract. The seller believes it is not probable that it will collect the amount it's entitled to receive under the contract The seller and buyer did not sign a formalized written contract